The ECB managed to one up the BOE in terms of hawkishness (at least in terms of what was expected) yesterday, with Lagarde teeing up the potential for rate hikes to come later in the year and ECB sources reports pretty much confirming that later.
The euro surged alongside bond yields, with EUR/USD breaking above its 100-day moving average for the first time since June last year. The pair is setting its sights on the January high @ 1.1483 next before looking towards 1.1500 potentially.
Elsewhere, EUR/GBP saw a solid bounce off the 0.8300 handle because of the above events. That might prove to be a solid floor for now unless the ECB backtracks on its hawkish step from yesterday.
In the equities space, we are seeing a slight rebound for stocks after the Amazon earnings beat after the close. But a lot will ride on sentiment coming from the US non-farm payrolls report later to set the tone before the weekend.
Meanwhile, oil is continuing to do its thing with Brent above $91 and WTI crude above $90. A weekly close at these levels would be a massive win for buyers to keep the run going and I'd favour only scaling out on longs next if there is a key headline that tempers with the mood.
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